Concerns arise over potential BTC price decline as Bitcoin ETF witnesses unprecedented surge in inflows

Concerns arise as spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States attract significant inflows, leading analysts to worry about a potential price decline. Hyblock Capital CEO and co-founder Shubh Varma noted that historically, such activity has been followed by bearish price movements. Varma highlighted the unusually large BTC ETF inflows in recent days, with multiple occasions seeing inflows exceeding $300 million. Data from Farsidedata revealed that between October 11 and 21, spot Bitcoin ETFs experienced a seven-day streak of inflows totaling approximately $2.68 billion before experiencing an outflow of $79.1 million on October 22. However, on October 23, inflows resumed with a daily total of $192.4 million. Varma pointed out that the last time there were such large inflows into spot Bitcoin ETFs, the price of Bitcoin dropped by 13% around three weeks later. For instance, on June 4 and 5, spot Bitcoin ETFs saw inflows of $886.6 million and $488.1 million respectively, while Bitcoin was trading between $68,800 and $70,000. By June 25, the price of Bitcoin fell to $60,266. Varma suggested that if history repeats itself and Bitcoin experiences a decline, analysts will be looking for large outflows in the spot Bitcoin ETFs. However, some analysts argue that the large inflows may indicate a potential supply shock on the horizon. North Node Capital chief investment officer and Bitcoin supporter Pentosh1 stated that a supply shock may be imminent. Additionally, data from crypto exchange Deribit indicates that Bitcoin options traders are hopeful that Bitcoin’s price will reach around $80,000 by the end of November, just three weeks after the US presidential election. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.